Monday, May 04, 2009

The deceptive nature of Large Numbers

When President Obama recently announced that they would be finding savings of one hundred million here, one hundred million there to cut costs in the federal budget, many were impressed.

On the other hand, that is is like an average American family cutting two dollars out of their yearly budget - not very hard to do.

Institution: Average Family
Yearly Budget: $40,000.00
Yearly Savings: $2.00
% savings: 0.005%

Institution: Federal Government
Yearly Budget: $2,000,000,000,000.00
Yearly Savings: $100,000,000.00
% savings: 0.005%


When our government has it's budget in the Trillions of dollars, a hundred million dollars is NOTHING!

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